Amazon Australia Report 2019 - What Australian consumers really think about the marketplace and its proposition - Practicology
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Amazon Australia Report 2019 What Australian consumers really think about the marketplace and its proposition
Amazon AU: Contents
P2 Methodology
P3 Executive Summary
P5 Awareness & Attitudes to Amazon Australia
How many shoppers have visited Amazon.com,au, and what
do they think of Amazon?
1,024 Australians were polled online in
P11 Purchase Decision-Making & Behaviour 2019 by Stable Research for this report.
Why have shoppers visited the site, how often have they We restricted the survey to those who had
purchased and why have they purchased? shopped online in the preceding 12
months, and were aware that Amazon had
P21 Key Product Categories an Australian site.
What have shoppers purchased from Amazon.com.au, and There was an even split of male to female
what might they purchase in the future? respondents, and circa 78% live in Metro
areas (which is aligned with the total urban
P25 Recommendations for Retailers & Brands population of Australia).
For more information please contact us at
P26 About Pattern hello@practicology.com
P27 About Practicology
Copyright 2019 2Amazon AU: Executive Summary
Amazon has been hugely successful at grabbing online market share in Its latest published figures show that it is making progress with the
the USA and certain European markets, such as the UK and Germany. localised Australian site:
Its Australian site launched in December 2017 and the marketplace • AU$ 106m in retail sales in 2018
remains committed to doing the same here. • 125 million items for sale
• 10,000+ third party sellers
Despite some negative press and consumer sentiment around the
launch, Amazon has described it as its most successful international The business also invested a massive AU$68m in marketing in 2018,
launch ever; and industry commentators expect it to continue to ramp and our research shows that it has been successful with its top of
up its presence and put pressure on local players in certain categories. funnel activity. 80% of all respondents had visited Amazon.com.au in
the past 12 months and 30% have made at least one purchase.
We decided to conduct consumer polling to understand how Australian
consumers view, and use, Amazon now that the site has been live for Price and product availability
more than a year. The research also provides an indication of the type In other markets Amazon has become a de facto online catalogue for
of products and categories where Amazon is likely to establish itself as many consumers, who use it as a product search engine when they are
a preferred choice for shoppers. in the consideration and comparison phase of shopping. This means
that Amazon also sets their expectations about what they should pay
In numbers for a product, and how easily or cheaply they can get it delivered.
Since launch, Amazon Australia has added Amazon Prime (which has
been a big driver of adoption in other markets), Fulfillment By Amazon Some 55.9% of visitors have checked the price of products, and 35.1%
and opened additional distribution centres. After initially trying to force looked for product information or reviews. Amazon.com.au has worked
Australian consumers to buy from the Australian site, it backtracked to to increase its range; and 35% looked for products they couldn’t find in
also allow them to buy from Amazon.com. store, and 29.4% for products they couldn’t find elsewhere online. ►
Copyright 2019 3Amazon AU: Executive Summary
Shopping behaviour as a result of Amazon’s local presence is still Price sensitivity
changing. In fact, more consumers felt it would change their behaviour It is clear from the polling results that consumers expect competitive
in the next 12 months than thought it had already changed their pricing when shopping on Amazon.com.au. Consumers mentioned
behaviour (27.1% and 17.6% of respondents, respectively). pricing against other online and offline retailers in Australia, and pricing
compared to what’s available shipping cross-border from Amazon.com.
Its Prime Day sale on the 15th-16th July, after our poll took place, was
described by Amazon Australia as its biggest two-day shopping period Price was the most often given answer when we asked why customers
since the site launched (Inside Retail, July 18 2019). had shopped on the Australian site (62.2%), and why those who have
visited but not made a purchase not to buy (41.2%).
Positive sentiment
Despite the negative headlines and consumer feedback that Category killer
Amazon.com.au saw at launch, consumer sentiment was broadly Thinking about where further growth in the marketplace will come from,
positive towards the marketplace. it is interesting to note the categories where those yet to purchase have
said Amazon is on the list of retailers that they would consider.
• 64% agreed it will widen product choice;
• 56.5% agreed it is good for consumers like them; Home & kitchen, electronics & computers, clothing & shoes, sports &
• 40.4% agreed it will drive down product prices. fitness, toys and luggage were all cited as categories they would
consider by a significant proportion of those yet to make a purchase.
Sentiment was particularly positive towards consumer brands and This roughly correlates with the categories that consumers have
retailers who sell on the platform. Some 52.9% said brands selling on already purchased from too.
Amazon are giving consumers more choice about how they buy
products. And 36.2% agreed that it allows them to buy from the brand We hope that you find our research useful as you contemplate whether
in a more convenient way than directly from the brand’s site or a store. Amazon.com.au is an appropriate channel for your products.
Copyright 2019 4Amazon Australia Report 2019 Awareness & Attitudes to Amazon Australia Copyright 2019 5
Amazon AU: Awareness & Attitudes
How many Australian shoppers have Why have Australian online shoppers visited
visited Amazon.com.au in the past year? Amazon.com.au?
To look for products they can't find in store 35.0%
80.2%
To look for products they couldn’t find on other
of shoppers have online sites 29.4%
visited
Amazon.com.au
in the past year
To look for product information / product reviews 35.1%
To check the price of products 55.9%
0 20 40 60
Copyright 2019 6Amazon AU: Awareness & Attitudes
Which Amazon sites have Australian online shoppers
purchased from in the past year?
Have bought from Amazon.com.au in the last 12
months 30%
Have bought from Amazon.com in the last 12
months 35%
Have purchased from at least one Amazon site
somewhere in the world in the last 12 months 58.5%
0 20 40 60
Copyright 2019 7Amazon AU: Awareness & Attitudes
Which of the following statements about Amazon.com.au did
shoppers agree with?
Agreed it provides quick delivery 29.4%
Agreed that it allows you to purchase a variety of products in
one order 44.8%
Agreed that it is easy to buy from 45.4%
Agreed it provides a wide variety of products 68.2%
Agreed it provides value for money 33.3%
0 10 20 30 40 50 60 70 80
Copyright 2019 8Amazon AU: Awareness & Attitudes
Amazon.com.au is good for consumers like me Amazon.com.au will drive down product prices
4.1% 4.7% 7.7%
18.9%
5% 14.3%
32.7%
34.4%
37.6% Amazon.com.au will widen product choices 40.5%
3.8%
7.6% 19.1%
Completely Agree
Somewhat Agree 24.6%
Neither Agree or Disagree
Somewhat Disagree
Completely Disagree
Copyright 2019
44.9%
9Amazon AU: Awareness & Attitudes
What did shoppers think about retailers and brands who sell on Amazon?
They are damaging my perception of them by selling on Amazon 6.2%
They are confusing me about how best to buy their products? 11.7%
They are allowing me to purchase their products more conveniently on
Amazon than from a store or their own website 36.2%
They are giving me more choice about how I buy their products 52.9%
They allow me to purchase products more cheaply on Amazon than from a
store or their own website 29.7%
0 10 20 30 40 50 60
Copyright 2019 10Amazon Australia Report 2019 Purchase Decision-Making & Behaviour Copyright 2019 11
Amazon AU: Purchase Decision-Making
For those who have purchased from Amazon.com.au, why did
they purchase?
The product was cheaper than from other retailers 62.2%
The product was not available from other retailers 43.8%
The product could be delivered more quickly than by other
retailers 29.6%
Amazon is easier to buy from than other retailers 26.6%
Amazon is their preferred retailer 5.9%
They have an Amazon Prime subscription 11.2%
Copyright 2019 0 10 20 30 40 50 60 70 12Amazon AU: Purchase Decision Making
For those who visited Amazon.com.au and had not yet made a
purchase, what would convince them to make a purchase for the
first time?
Cheaper prices than elsewhere 76.8%
Free delivery 72.3%
If the product was not available elsewhere 36.4%
If they had a Prime subscription 20.9%
Gave other reasons 6%
Copyright 2019
0 10 20 30 40 50 60 70 80 90
13Amazom AU: Purchase Decision Making
How likely were shoppers to become Prime subscribers in the next
12 months?
8.6%
19.8%
14.1%
Will definitely sign up
Will probably sign up
Don’t know
Will probably not sign up
Will definitely not sign up
21.1%
34.4%
Copyright 2019 14Amazon AU: Purchase Behaviour
Amazon.com.au launching has changed my Amazon.com.au launching will change my
shopping habits in the past 12 months shopping habits in the next 12 months
4.8% 5.4%
17.3%
12.8%
Completely Agree
32.3% Completely Agree
21.7%
Somewhat Agree Somewhat Agree
Neither Agree or Disagree Neither Agree or Disagree 16.6%
Somewhat Disagree Somewhat Disagree
Completely Disagree Completely Disagree
30.7%
19.4% 40%
Copyright 2019 15Amazon AU: Purchase Behaviour
Of people that have bought from Amazon.com.au, how
often have they purchased from the site in the past year?
Once and not again 18.1%
Between 2-4 times 58.0%
Between 5-12 times 17.1%
More than 12 times 3.3%
0 20 40 60
Copyright 2019 16Amazon AU: Purchase Behaviour
For those who have purchased from Amazon.com.au, who did
they purchase for?
Purchased for themselves 85.8%
Purchased for a spouse or partner 32.6%
Purchased for their children 23.4%
Purchased for another family member 18.8%
Purchased for friends 11.8%
Purchased for work/business 4.3%
Copyright 2019
0 10 20 30 40 50 60 70 80 90 100
17Amazon AU: Purchase Behaviour
For those who purchased from Amazon.com.au, who did they
buy from?
Made a purchase directly from Amazon 76.3%
Made a purchase from a seller whose name they
recognised (ie retailer/brand) 18.8%
Made a purchase from a seller whose name they didn’t
recognise 26.3%
Couldn’t remember or didn’t know who they had purchased
from 9.2%
Copyright 2019
0 10 20 30 40 50 60 70 80 90
18Amazon AU: Purchase Behaviour
For those who visited Amazon.com.au and did not made a
purchase, what was the reason?
Found the product they wanted but did not like the product
price 41.2%
Found the product they wanted but did not like the delivery
price 28.8%
Found the product they wanted but it was not in stock 10.4%
Found the product they wanted but didn’t like the delivery
timeframe 9.5%
Found the product they wanted but did not like the seller 7.2%
Could not find the product they wanted 27.1%
Gave another reason 16.6%
Copyright 2019
0 5 10 15 20 25 30 35 40 45
19Amazon AU: Purchase Behaviour
Which marketplaces other than Amazon had shoppers
purchased from in the last 12 months?
Wish 2.2%
Tradingpost.com.au 2.9%
Fishpond.com.au 5.9%
MyDeal.com.au 8.2%
AliExpress.com 10.3%
Catch.com.au 26%
Ebay.com.au 58.1%
Copyright 2019
0 10 20 30 40 50 60 70
20Amazon Australia Report 2019 Key Product Categories Copyright 2019 21
Amazon AU: Key Product Categories
For those who have purchased from Amazon.com.au in the past 12 months, which
categories have they purchased?
Books & ebooks 15.5%
51.8%
Electronics & computer equipment 14.3%
47.6%
Toys, kids and baby 6.6%
22.1%
Sport, fitness & outdoor 5%
16.6%
Home & kitchen 6.7%
22.5%
Home improvement 3.2%
10.7%
Automotive parts & accessories 1.5%
4.9%
Luggage & travel 2.5%
8.5%
Food & pantry 1.6%
5.2%%
Pet food & supplies 2.1%
6.8%%
Vitamins & supplements 2.7%
9.1%
Skincare & make-up 3.8%
12.7%
Luxury beauty 1.4%
4.6%
Haircare 1.6%
5.2%
Clothes, shoes & accessories 7.1%
23.8%
0 10 20 30 40 50 60
Copyright 2019 22
% of total participants % of those who have purchased from the siteAmazon AU: Key Product Categories
For those who have previously purchased clothing, shoes and accessories
from Amazon.com.au, which of the following have they bought?
Womenswear 3.3%
11.1%
Menswear 3.8%
12.7%
Kidswear 1.6%
5.2%
Mens underwear and socks 0.9%
2.9%
Womens underwear and socks 0.8%
2.6%
Mens footwear 2.1%
6.8%%
Womens footwear 1.6%
5.2%%
Kids footwear 0.7%
2.3%
Sportswear 1.5%
4.9%
Sunglasses and eyewear 1.6%
5.2%
Handbags 1.1%
3.6%
Jewellery 0.8%
2.9%
0 2 4 6 8 10 12 14
% of total respondents % of those who purchased the category
Copyright 2019 23Amazon AU: Key Product Categories
For those yet to buy, how likely are they to buy different product categories from
Amazon.com.au in the future?
Books & ebooks 68.2% 22.3%
9.5%
Electronics & computer equipment 68.3% 36.6%
5%
Toys, kids and baby 55.5% 40.7%
3.8%
Sport, fitness & outdoor 59.8% 35.7%
4.5%
Home & kitchen 68.5% 27.1%
4.5%
Home improvement 52% 45.6%
2.4%
Automotive parts & accessories 41.6% 55.4%
3.1%
Luggage & travel 64.4% 31.2%
4.3%
Food & pantry 39.3% 58.4%
2.2%
Pet food & supplies 40.9% 56.9%
2.2%
Vitamins & supplements 44.2% 52.3%
3.5%
Skincare & make-up 46.4% 49.2%
4.3%
Luxury beauty 41% 55.5%
3.5%
Haircare 46.6% 49.8%
3.6%
Clothes, shoes & accessories 62.8% 31.7%
5.6%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Copyright 2019 First choice for future purchases One of several retailers would consider Would not consider 24Amazon AU: Conclusions
• Awareness of Amazon’s Australian site is high, but the majority of consumers are not yet buying frequently. Frequency will
likely increase as more consumers get access to a Prime subscription, which more than 20% of respondents said they will
definitely or probably do in the coming year.
• High awareness and rising traffic to Amazon.com.au shows that it is being adopted by customers in the consideration phase
of the customer journey, even if sales are yet to match.
• Australian consumers are happy to buy from Amazon third-party sellers, so consumer brands do not need to sell directly to
Amazon if they would prefer to keep control of how they are represented on the marketplace.
• Amazon shoppers are very price sensitive, including delivery costs. Brands should be aware that shoppers will price-match
with Amazon.com as well as other online and offline retailers.
• Brands not yet selling in Australia should consider Amazon as a launch sales channel, as consumers perceive the platform
as being a place to search for items not stocked elsewhere.
• Use Fulfillment By Amazon (FBA) or be prepared to match Amazon’s offer on delivery cost and timeframe. This will become
more crucial as the number of Prime subscriptions increases.
• Those who have yet to purchase from Amazon are willing to consider purchasing from the marketplace in the next 12
months in a wide variety of product categories. Brands who have seen sluggish sales so far should review their pricing and
delivery proposition against other sellers on the marketplace and external competitors.
Copyright 2019 25About Pattern
In conjunction with our parent company Pattern, we offer a full-service Amazon distribution model in Australia, so consumer
brands can control their marketplace presence whilst profitably growing sales.
How does it work?
• We operate on a wholesale basis and buy your stock, acting as
your authorised Amazon third party seller.
• We pay for Amazon marketing – 0.75% of sales contribution.
Pattern’s credentials as your Amazon partner
• Product listings and content are localised for the market.
• Top 5 Amazon seller globally
• Marketing is optimised using our proprietary technology.
• #1 seller in Health & Personal Care
• We take care of all backend operations; including distribution,
mystery shopping and customer service. • 100,000+ 5 star Amazon reviews
• You deliver to our Melbourne distribution centre and we use • 200,000+ units shipped every week
Fulfillment By Amazon (FBA) to get orders to customers.
• Selling on Amazon in the USA, Canada, UK,
In Australia we can also offer a managed service model to brands Germany, France, Italy, Netherlands, Spain,
who want to sell directly to Amazon. UAE and Australia.
Copyright 2019About Practicology Practicology is a strategic digital consultancy and outsourced ecommerce provider founded in 2009. In September 2018 we were acquired by Pattern Inc, an online marketplace specialist and one of the top five Amazon sellers globally, and now have offices in the USA, UK, UAE, China, Hong Kong and Australia. Together our mission is to help our retail and consumer brand clients around the world to solve their digital and omnichannel challenges; ultimately to sell more, protect their brands online and build profitable relationships with their customers. The retail and consumer brands we have worked with include: Adidas, Converse, Gazman, Haircare Australia, Kong, Moet Hennessy, Pandora, rebel, Reckitt Benckiser, Seafolly, Skullcandy and Under Armour. We support our clients in building an omnichannel or digital strategy and executing against it, with a mixture of traditional consultancy and outsourced ecommerce services, including fulfilling the role of a brand’s entire ecommerce or marketplace team. Pattern is the authorised third party Amazon seller for more than 60 consumer brands, and we are also an accredited Tmall Trade Partner for both its cross-border and domestic marketplaces. www.practicology.com/au hello@practicology.com Copyright 2019
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